Robust global cues and sustained buying from investors across the board during the entire session helped the local equity markets to sign off trade with handsome gains on Wednesday. Metals, realty and consumer durable counters witnessed maximum gains. The bears never looked in a dominating position to prove their dominance in trade. The markets kicked off trade on a strong note underpinned by the positive indications from the regional peers. They continued to add weight as the day progressed. The market sentiment was lifted by the overwhelming response to the follow-on-public offer (FPO) of the NTPC, which got subscribed 64% within first four hours of trade. Besides, the soothing comments from India's chief statistician Pronab Sen that the decision on stimulus exit may be deferred by the government in the forthcoming Union Budget also boosted confidence among market participants. Investors made a beeline for the blue-chip counters in trade. New listing, Infinite Computer Solutions finished the day with gains of about 16% compared to its issue price of Rs 165 per share. Primary market space has once again started buzzing indicated by the good response to the initial public offering (IPO) of realty major -- DB Realty. Finally, the BSE Sensex surged 332.61 points or 2.06% to close at 16,496.05 while the S&P CNX Nifty zoomed 101.75 points or 2.11% to shut shop at 4931.85.

The US markets got a halt to their two days rally on Wednesday, a disappointing report on services industries coupled with Pfizer's disappointing outlook weighed on the markets. On the same time President Obama's pledge to complete banking and healthcare reform revived fears of increased regulation. The Institute for Supply Management said its index of service activity rose to 50.5 in January from a revised 49.8 in December, but was lower than expected. The Dow Jones Industrial Average lost 26.30 points, or 0.26%, to 10,270.55. The S&P 500 index fell 6.04 points, or 0.55%, to 1,097.28, while the Nasdaq rose 0.85 points, or less than 0.04%, to 2,190.91.

Crude prices declined on Wednesday after surging in the previous trading. The larger-than-expected build in crude stocks along with the upswing in the dollar against other currencies pulled the crude prices down in the last hour of trade. Benchmark Crude for March delivery fell 25 cents or 0.32 percent to $76.98 per barrel on the New York Mercantile Exchange. In London, March Brent crude settled down 14 cents, or 0.18 percent, at $75.92 a barrel.

The Indian rupee continued its surge on Wednesday. The domestic currency got a good start as the regional stock markets were indicating good trade for the local equity markets; also the dollar was showing weakness against other major currencies. During the day's trade the rupee touched its two week high of 45.94, it's strongest since January 21.The surge in the local equity markets brought expectation of fund inflow, supporting the rise in rupee. Finally the rupee closed at 45.98, 39 paise stronger compared to its Tuesday's close of 46.37/38.

The FII on Wednesday were the net buyers in the equity segment with gross buying of Rs 2810.10 crore against gross sell of Rs 2799.20 crore, while in the debt segment they were the net sellers with a gross purchase of Rs 225.60 crore against gross sales of Rs 406.30 crore.

The US markets once again closed lower after two consecutive days of rally, services businesses the biggest part of US economy came with a disappointing report cautioning investors that the recovery will be slow. The Asian markets have made a weak start and most of the indices are trading in red with Hang Seng witnessing the deepest cut. The domestic markets surged in the previous session supported by the good global cues but today the start is likely to be cautious. Oil marketing companies may get some sentimental boost-up with the Kirit Parikh committee report that the fuel prices should be deregulated.

Support and Resistance: S&P CNX Nifty and BSE Sensex

                                                          Nifty Top volumes

• Suzlon Energy has stated that it had no plans to sell its remaining 26.06% stake in Hansen Transmissions International NV.
• SAIL has announced a new round of hike in steel prices of Rs 500 per tonne for flat products.
• Mahindra and Mahindra has launched its next generation mini truck 'Maxximo' priced at Rs 2.79 lakh.
• HDFC has decided to pay variable interest rate on recurring deposits and has also launched a systemic savings plan (SSP) scheme.
• L&T's construction division, Building & Factories Operating Company, has bagged orders worth Rs 1100 crore.